WASHINGTON (dpa-AFX) - Recent optimism Wall Street has been building on the back of solid domestic data points seems to be strengthening. The index futures point to a positive start on Friday ahead of the long weekend. A trio of key reports due for release later in the global trading may give a decisive direction for the markets.
Some comfort may also be derived from the fact that U.S. lawmakers have agreed to extend the payroll tax-break by two months.
As of 6:40 am ET, the Dow futures are rising 44 points, the S&P 500 futures are gaining 5.30 points and the Nasdaq 100 futures are moving up 7 points.
U.S. stocks advanced on Thursday, as positive domestic economic data increased risk appetite of traders. A further retreat in jobless claims and a higher than initially estimated consumer sentiment reading temporarily offset concerns about the European debt crisis.
On the economic front, the Commerce Department is set to release its durable goods orders report at 8:30 am ET. Economists expect a 1.9 percent increase in durable goods orders for November following a 0.7 percent drop in October.
Around the same time, the personal income & outlays report for November is due. Economists expect the report to show that personal income rose 0.2 percent and personal spending increased by 0.3 percent. In October, personal income rose a better than expected 0.4 percent, while personal spending grew at an anemic 0.1 percent rate.
The Commerce Department is also scheduled to release the new home sales report for November at 10 am ET. Economists expect the report to show that new home sales increased to an annual rate of 314,000 after it rose 1.3 percent month-over-month to 307,000 units in October.
In corporate news, Rio Tinto (RIO) said it has extended its offer to acquire all outstanding common share of Hathor for C$4.70 per share in cash until 6th January 2012.
ViroPharma (VPHM) said it has entered into an exclusive option to buy privately held Meritage Pharma for an upfront payment of $7.5 million and $12.5 million in potential milestone payments.
Rambus (RMBS) said it has signed a patent license agreement with Broadcom (BRCM), covering the use of Rambus patented innovations in a broad range of IC products offered by Broadcom.
Praxair (PX) said its subsidiary has agreed to buy Texas-based Texas Welders Supply Company. The deal is expected to close by December 31st, 2011.
Baxter (BAX) and Momenta Pharma (MNTA) announced that they have entered into a global collaboration to develop and commercialize biosimilars. The agreement calls for Baxter making an upfront cash payment of $33 million to Momenta for 6 follow-on biologic compounds and also making additional payments over the next several years, contingent on the achievement of some milestones.
Everest Re (RE) said it expects to incur net losses of between $100 million and $125 million after reinstatement premiums and taxes for claims arising from floods in Thailand. The company also said it expects an additional $26 million in net after-tax loss estimate for the earthquake that struck Japan in March.
The major Asian markets closed mostly higher, encouraged by the positive lead from Wall Street overnight. Evidences showing that the recovery is getting well entrenched in the world's largest economy calmed traders and perked up risk appetite. The Japanese market remained closed for a public holiday.
Australia's All Ordinaries ended up 49.90 points or 1.20 percent at 4,192 and Hong Kong's Hang Seng Index rose 250.94 points or 1.37 percent before closing at 18,629. The Chinese Shaghai Composite Index snapped a 4-session slide and ended 0.85 percent higher at 2,205.
The major European markets are also advancing, with the French CAC 40 Index rallying 1.3 percent, while the German DAX Index and the U.K.'s FTSE 100 Index are advancing 0.4 percent and 0.9 percent, respectively.
Oil futures are gaining ground, while gold is modestly lower. The dollar is seeing modest weakness against most currencies.
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© 2011 AFX News
